The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1887-06-02

1uiAlSleS Gn6 IOliOWlng interesting ldCtS
as to the construction of the Clinch Valley
extension of the Norfolk 81 Western Rail
4 road
The ''Virginian" has had a good deal to
say about the projected scheme OF West
ern Extension of the Norfolk s. Western
road through the Clinch Valley to con-
nection with the great Louisville u Nash
vile system. Both in local and through
sense this is grand movement, and must
I rebound vastly to the benefit of the N. Il
w. Company and to the portions OF Viz
gina to be developed We have to-day
some further particulars in regard to the
important undertaking, furnished by Pres
ident Kimball himself. The contract has
been closed between the l.. e n. and N. 81
w. Companies, and the point Of connec-
tion will be in Wise county, Virginia.
That portion of the connecting line to
be constructed ty the Norfolk & Western
Company will be built under the charter
of the CIinch Valley Railroad Company,
] has been consolidated with the Norfolk &
| Western Company and the line when COM
pleted will be known and operated as the
/ eli nch Valley Division.
This lire will be about lis miles in length
| leaving the New River Division near Ora
ham Station, adjacent to the Pocahontas
Flat Top coal fields and will be construct
steel rails, iron bridges and thoroughly
equipped. 1t will traverse section con-
tanning coal, iron and manganese ores,
marble, barytes, ETC., and bordered by for
ests Of poplar, oak and other woods.
The extraordinary growth of the Com
pany's coal and other mineral traffic re-
sulting from the construction of the New
River Division and the Cripple Creek eX
tension has been referred to in successive
annual reports. 1t is believed that the
available local business would alone justify
the construction of this line. In addition,
however. the connection with the Louis
vile and Nashville Railroad will open up
a trunk line between the port of Norfolk
and the West and Northwest, by means of
which short through line via Louisville
will be established and much new traffic
will be secured to the two companies in
both directions.
The development of local traffic upon the
cOmpany'S lines has been so great that the
present equipment is entirely inadequate
to the current demands upon it. The in,
dustrial enterprises now in operation, and
which have resulted from the company
policy of fostering local industries, are so
seriously hamrared by insufficient facili-
ties for handling the traffic as to demand
important extensive additions to the mo
tive power and rolling stock. Many en-
terpises have been organized and only
await the extension of the company7s
present lines, now in progress, and the in
crease of its equipment, to enter upon ac-
tive operations. Upon the opening of the
Clinch Valley Division, still further addi-
tions will become necessary.
To provide the means for the increased
equipment and for the construction of the
Clinch Valley Division, it has been deci-
ced to issue and dispose of So, 100000 five
per cent first mortgage gold bonds, Norfolk
and Western Railroad, Clinch Valley Di-
vision, seventy years, interest payable
March l and September 1; land 100000
shares) Norfolk and Western Railroad
Company's preferred stock.
The proceeds of the above will be suffi-
Gent to complete the Clinch Valley Di-
vision and acquire about 81, 500, 900 of
equipment. Of this equipment, engines
and cars to the cash value of $500, eco will
be included in the $2,500,000 mortgage
above referred to, so that the bonds will
constitute alirst lien upon about lis miles
of railroad and upon equipment TO the
value of $500, 900, equivalent to a first lien
of about SIT, 400 per mile of railroad and
"a, $50 per mile for equipment.
For the remainder of the equipment to |
the value of about 100000 trust bonds |
will be created, which will be held as an |
asset in the treasury of the company.
The issue of $4,000, 900 of preferred stock
has been resolved upon by the Board Of Di-
rectors after the most careful considera-
tion, and its results will greatly strengthen
the company's financial condition.
The increase in the capital stock will be
sixteen Q6) per cent, whereas the compa-
ny acquires IFS miles of railroad, being an
increase in mileage of more than twenty
20) per cent.
On the completion of the operation the
will not only have its line in first
class physicalcondition but will have ample
equipment for its rapidly. growing business
and its fixed charges will only be increased
1925, 900 per annum.
On the other hand, while it's capital re-
quirements are thus well provided for, it
will not only be free from floating debt,
but will have in it's treasury some $780,
900 of available assets, while the business
of 1887 from developments along it's line
is steadily increasing, and gives promise of
a substantial cash surplus for the present
year.
A satisfactory offer for the bonds having
been received, they have been sold.